HP Stock Valuation

HPQ
 Stock
  

USD 30.04  0.40  1.35%   

What is the intrinsic value of HP stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as HP, is its stock price multiplied by the total number of shares outstanding, calculating HP's enterprise value requires a different approach. It uses HP's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
HP Enterprise Value is very stable at the moment as compared to the past year. HP reported last year Enterprise Value of 34.77 Billion. As of 3rd of December 2022, Tangible Asset Value is likely to grow to about 36.4 B, while Free Cash Flow is likely to drop about 5.2 B.
HP Inc owns a latest Real Value of $32.1 per share. The recent price of the firm is $30.04. At this time, the firm appears to be undervalued. Our model calculates the value of HP Inc from inspecting the firm fundamentals such as Shares Owned by Institutions of 81.46 %, current valuation of 36.92 B, and Profit Margin of 0.05 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we encourage obtaining undervalued equities and abandoning overvalued equities since, sooner or later, asset prices and their ongoing real values will blend.
  
HP Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as HP's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

HP Most Recent Valuation Data

Dividend Share
1.0
Beta
1.0
Fiscal Year End
October
Enterprise Value
36.9 B
net Debt
7.9 B
accounts Payable
15.3 B
Undervalued
Today 30.04
Please note that HP's price fluctuation is very steady at this time. Calculation of the real value of HP Inc is based on 3 months time horizon. Increasing HP's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for HP Inc is useful when determining the fair value of the HP stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of HP. Since HP is currently traded on the exchange, buyers and sellers on that exchange determine the market value of HP Stock. However, HP's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
32.10
Real Value
34.47
Upside
Estimating the potential upside or downside of HP Inc helps investors to forecast how HP stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of HP more accurately as focusing exclusively on HP's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
4.034.164.26
Details
Hype
Prediction
LowEstimated ValueHigh
27.2429.6131.98
Details
9 Analysts
Consensus
LowTarget PriceHigh
33.0035.5740.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use HP's intrinsic value based on its ongoing forecasts of HP's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against HP's closest peers. When choosing an evaluation method for HP Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

HP Investments

10.86 Billion

HP Valuation Drivers Correlation

Many accounts on the financial statements of HP Inc are highly interrelated and sometimes correlated. Consequently, when conducting HP's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of HP
Click cells to compare fundamentals

HP Valuation Trend

Knowing HP's actual value is paramount for traders to make sound investment determinations. HP's real value is not only important for the investor to make better decisions but also for a more accurate overall view of HP's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both HP's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

HP Market Cap

HP Inc is rated # 2 in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 83.32 Billion. HP totals roughly 30.88 Billion in market capitalization claiming about 37% of equities under Information Technology industry.
Capitalization  Valuation  Workforce  Total debt  Revenue

HP Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining HP's current stock value. Our valuation model uses many indicators to compare HP value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HP competition to find correlations between indicators driving HP's intrinsic value. More Info.
HP Inc is rated below average in beta category among related companies. It is one of the top stocks in last dividend paid category among related companies creating about  1.00  of Last Dividend Paid per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value HP by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HP's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HP's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates HP's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in HP and how it compares across the competition.

About HP Valuation

The stock valuation mechanism determines the current worth of HP Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of HP Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HP Inc based exclusively on its fundamental and basic technical indicators. By analyzing HP's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of HP's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of HP. We calculate exposure to HP's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to HP's related companies.
Fiscal Year End
October
Industry
Computer Hardware
Concentration
Technology Hardware, Storage & Peripherals
Service Category
Technology Hardware, Storage & Peripherals
Employer Id Number
94-1081436
Last ReportedProjected for 2022
Gross Profit12.1 B12.8 B
Profit Margin 9.22  9.95 
HP's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether HP's value is low or high relative to the company's performance and growth projections. Determining the market value of HP can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of HP represents a small ownership stake in the entity. As a stockholder of HP, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

HP Dividends Analysis For Valuation

As of 3rd of December 2022, Dividend Yield is likely to grow to 0.0315, while Payment of Dividends and Other Cash Distributions is likely to drop (1.2 B). . HP Earnings per Basic Share are very stable at the moment as compared to the past year. HP reported last year Earnings per Basic Share of 4.84. As of 3rd of December 2022, Earnings per Diluted Share is likely to grow to 5.18, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 9.3 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.1 B-1.2 B
Dividend Yield 0.0299  0.0315 
Dividends per Basic Common Share 0.89  0.81 
There are various types of dividends HP can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of HP shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from HP Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When HP pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of HP by the value of the dividends paid out.

HP Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as HP does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y0.174

HP Current Valuation Indicators

Valuation refers to the process of determining the present value of HP Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value HP we look at many different elements of the entity such as HP's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. HP's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final HP's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as HP, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use HP's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes HP's worth.
Please check Risk vs Return Analysis. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running HP Inc price analysis, check to measure HP's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HP is operating at the current time. Most of HP's value examination focuses on studying past and present price action to predict the probability of HP's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move HP's price. Additionally, you may evaluate how the addition of HP to your portfolios can decrease your overall portfolio volatility.
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Is HP's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HP. If investors know HP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HP listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.17
Market Capitalization
30.9 B
Quarterly Revenue Growth YOY
(0.11) 
Return On Assets
0.085
The market value of HP Inc is measured differently than its book value, which is the value of HP that is recorded on the company's balance sheet. Investors also form their own opinion of HP's value that differs from its market value or its book value, called intrinsic value, which is HP's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HP's market value can be influenced by many factors that don't directly affect HP's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HP's value and its price as these two are different measures arrived at by different means. Investors typically determine HP value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HP's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.